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Ravencoin perpetual futures explained: RVN Eth mining alternative price rising ahead of Merge

By Raphael Sanis

13:49, 13 September 2022

RVN logo on a phone
The RVN perpetual futures contract is listed with a PERP pairing – Photo: Shutterstock

The FTX exchange has listed a perpetual futures contract for ravencoin (RVN) as interest grows in proof-of-work (PoW) cryptocurrencies.

Investors are proving eager to take advantage of the migration of miners as Ethereum (ETH) switches to a proof-of-stake (POS) consensus mechanism.

RVN to USD

According to CoinMarketCap, RVN’s price was up 59% over the past seven days, as of 13 September, and was trading at $0.0627.

All about the new RVN contract

Perpetual contracts allow investors to trade futures without any expiry dates. This means traders can hold a long or short RVN position on FTX for any length of time, depending on funds.

The new RVN contract on FTX has only been paired with the Perpetual Protocol (PERP) cryptocurrency. As the name suggests, the protocol is a decentralised exchange (DEX) designed specifically for trading perpetual futures.

While FTX is using the PERP native cryptocurrency for the RVN contract, it was not clear in its announcement if it is using the protocol.

Proof-of-work dominance

RVN was forked from bitcoin (BTC) and as such uses the same PoW consensus mechanism.

DOGE/USD

0.17 Price
-1.130% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.0012872

XRP/USD

0.55 Price
-0.350% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168

ETH/USD

3,270.92 Price
+1.280% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00

BCH/USD

536.00 Price
+1.040% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 2.50

Although Ethereum believes the future lies in PoS, there is clear dominance of PoW cryptocurrencies. CryptoSlate has reported that the consensus mechanism makes up 62% of all cryptocurrencies.

Despite not being as dominant as bitcoin, ravencoin was still ranked 10th by market capitalisation among all PoW cryptocurrencies.

Interest from other exchanges

Other exchanges and protocols appeared to have noted ravencoin’s status among PoW coins.

KuCoin listed the cryptocurrency on 31 August 2022 with the USDT pairing.

Meanwhile, the mining pool platform Hiveon launched an RVN pool on 6 September with 0% fees. It appears to be paying off for Hiveon as MiningPoolStats showed it was ranked third out of all RVN pools.

Recent RVN price action

Ravencoin has been making steady gains in the run up to The Merge and its market cap stood at $662m  as of 13 September.

It has jumped from $0.0288 on 4 September to $0.0627 at the time of writing, an increase of 117%.

Markets in this article

BTC/USD
Bitcoin / USD
67497.30 USD
327.8 +0.490%
PERP/USD
PERP/USD
1.1996 USD
-0.0195 -1.620%
RVN/USD
Ravencoin / USD
0.03480 USD
0.00179 +5.520%
ETH/USD
Ethereum / USD
3270.92 USD
41.43 +1.280%

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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